Swan Energy Blog

Swan Energy Blog

Swan Energy continued its excellent track record in the first half of 2018. Existing wells are producing, new wells are in the works, and exploration continues. Swan Resources Swan Resources has interest in 55 Oklahoma oil wells. These wells have together generated 1,750,953 (gross) BOE to date with a...

A Joint Venture (JV) is when two or more parties come
together and participate in a specific project. In a JV, all parties are
invested in the project in terms of money, time, and effort to build
upon and accomplish a specific task. While Joint Ventures are generally
small to medium size projects, major corporations also use this method
in order to diversify.

A Joint Venture can ensure the success of smaller
projects for those that are just starting in the business world and can
also benefit established corporations. Since the cost of starting a new
project is generally high, a Joint Venture allows all parties to share
the burden of the project, as well as the resulting profits.

Swan Energy’s Colorado projects saw a very active Q4. We spudded 27
wells as part of four pads in Wattenberg. Specifically, those wells
include the Pratt pad where 6 wells were spud in addition to the
Greenleaf pad (11 wells); Crow Creek pad (7 wells); and, Colt pad (3
wells). For the year, Swan participated in 47 wells in
Colorado, of which 22 are producing an average of 344 BOEPD and another
25 wells are under completion.

Twelve years ago, Brandon Davis was unemployed. While job hunting, he
stumbled across an ad for a sales position at an oil company. Davis
applied and landed the position, but it proved to be more than just a
job—it was a stepping-stone for his entrepreneurial spirit. In 2008, he
started Swan Energy Inc., an independent oil and gas producer. Here,
Davis talks about the problems with Colorado and where his company is
headed.

The Environmental Protection Agency says it has found no evidence
that hydraulic fracturing — better known as fracking — has led to
widespread pollution of drinking water. The oil industry and its backers
welcome the long-awaited study, while environmental groups criticize
it.

“We are saddened by the loss of our friend and the namesake of Swan
Energy, Carl Swan, who passed away on Friday, May 22 at the age of 89.
Carl touched so many people during his long life and helped too many of
us to count. He was both a mentor and a friend, and I will never forget
what he taught me about being successful in this business and in life.
As a tribute to Carl, I named Swan Energy in his honor. His legacy
lives on.”

Brandon Davis has been honored by the Denver Business Journal as one of
the city’s “40 Under 40” which recognizes 40 business professionals
under the age of 40 years old for their business success and community
contributions. Brandon was one of 375 people nominated for the honor.

In 2013, Colorado broke a 56-year old
record for crude oil production. Data collected by the Colorado Oil and
Gas Conservation Commission showed a record-breaking 64.9 million
barrels were produced in Colorado in 2013. The previous record was set
in 1956, when Colorado produced 61.9 million barrels.

Monthly
production figures for 2014 appear to be running ahead of 2013’s
figures. However, COGCC won’t have final, verified 2014 crude oil
production figures for several months. Will 2014 be another
record-breaking year for Colorado? Although it is still too early to
tell, looking at the factors behind the production records set in 1956
and 2013 record may give clues as to what the future holds for Colorado
crude oil production.

Energy production in Colorado looks differently than it did 153 years
ago. The advent of environmental regulations, coupled with the oil and
natural gas industry’s investment in technology, have moved Colorado to
the forefront of responsible energy production.

Some of the chemicals found in fracking
fluid collected in five states — including Colorado — were no more toxic
than common household substances, according to a newly released study
by researchers at the University of Colorado.

The study, published Wednesday in the journal Analytical Chemistry,
found that the “surfactant” chemicals in the fracking fluid samples
also were found in everyday products such as toothpaste, detergent, ice
cream and laxatives.

Michael Thurman, co-founder of CU’s
Laboratory for Environmental Mass Spectrometry, said this is the first
published paper to identify some of the organic fracking chemicals going
down into wells.

There is plenty of news about the price of oil these days and much of it
is good for our Joint Ventures in Colorado and Oklahoma. Just consider
these very positive points from the U.S. Energy Information Agency.

Swan Energy has participated in 40 new wells, with 12 of them in
Oklahoma and 28 in Colorado. So far this year 1,312,962 BOE have been
produced from our 103 wells, generating over $111,000,000 in gross
revenue. Swan and its partnerships are currently participating in 7,500
BOEPD or approximately $637,500 per day.

Swan Energy announced today that it has partnered with the Colorado
Avalanche and Pepsi Center to feature the corporate logo embedded in the
ice for all Avalanche games during the 2014-15 season. The partnership
launched when the Swan Energy logo was displayed for the Avalanche’s
first home pre-season game against the Anaheim Ducks.

Crude oil and lease condensate production
in the United States exceeded 8.6 million barrels per day (bbl/d) in
August, a production volume not observed since July 1986, according to
EIA’s latest Petroleum Supply Monthly.

More than half of total U.S. production
was accounted for by record production from three basins in three
states. Production from the Permian Basin in Texas and New Mexico
accounted for 1.66 million bbl/d, while the Eagle Ford Shale in the
Western Gulf Basin, also located in Texas, produced 1.57 million bbl/d.
The Bakken Shale in North Dakota’s Williston Basin accounted for 1.13
million bbl/d.

Swan Energy Employees Accept the Ice Bucket Challenge A group of Swan
Energy headquarters employees accepted the ice bucket challenge.
They did their part to raise funds and awareness for the good work of
the ALS Association.

The global oil landscape is rapidly changing, with “shockwaves” from
supply growth in the US due to shale gas, light tight oil as well as the
Canadian oil sands extending to “virtually all recesses of the global
market,” the International Energy Agency (IEA) wrote in a May 14 report.